More Auto Dealers to Roll Out HDTV Ads

With more consumers owning HDTV sets and more stations offering programming in this rich format, advertisers should be rolling out more ads to make their products and commercials look their best. For a while, the costs and complexity to shift to HD were prohibitive. But that has changed and industry experts predict that more local and regional marketers will be making the move to the HD format.

Currently, about 73% of local TV operators in the top 25 markets say they accept HD ads. So far, about 20% of national marketers are delivering their ads in HD. But only 12% of regional advertisers are doing so. Industries which have a significant TV ad presence at the regional level, such as auto dealers and retailers could benefit from distributing ads formatted for HD.  In particular, research shows that auto brands produce and distribute 32% of their ads in HD format at the national level. But when it comes to regional ad groups and local dealers in this industry, the number is more like 6%.

Analysts at Extreme Reach, which tracks HD advertising trends, point out that the HDTV density of frame pixels is as much as 6 times higher than standard TV. As a result, when consumers view standard format ads on their HDTVs, they’re likely to see graphics that appear pixilated or muted. In addition to the extremely clear picture, benefits of the HD format advertising include:

  • Effectiveness: Viewers agree that HD delivers a higher quality ad which favorably impacts the brand.
  • Rise Above: Local auto dealers and retailers have an opportunity to stand out against national competitors when their local ads are presented in HD.
  • Keep Up: Advertisers that don’t keep up with technology changes may be poorly perceived by consumers.

John Roland, CEO of Extreme Reach, says regional TV advertisers need to take another look at the HD format. The ease of distribution has improved and as prices have come down, local merchants such as auto dealers can make a big impression on viewers.

[Source: HD Advertising Trends Report. Extremereach​.com. Third Quarter 2011. Web. 10 Nov. 2011] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.